A routing situation where a shipper must use a particular railroad for some portion of a movement because no competitive alternative exists for that segment, giving that railroad pricing leverage. The bottleneck carrier can set rates for the captive segment independently of competitive pressures. STB rules allow bottleneck shippers to challenge rates through rate cases.
The ability of a shipper to use more than one railroad for a given movement, either through reciprocal switching, trackage rights, or geographic proximity to competing lines. Competitive access is a key factor in rate negotiations and is central to rail regulatory policy. Shippers with competitive access generally obtain lower rates than captive shippers.
The independent U.S. federal agency responsible for the economic regulation of the nation's freight railroads, including jurisdiction over rates, mergers, acquisitions, line sales, and abandonments. The STB was created by the ICC Termination Act of 1995 as the successor to the Interstate Commerce Commission. It adjudicates shipper complaints about unreasonable rates and competitive access.
A proceeding before the Surface Transportation Board in which a shipper challenges a railroad rate as unreasonably high, typically under the Simplified Standards for Rail Rate Cases or the Full Stand-Alone Cost methodology. Rate cases are complex, expensive, and time-consuming, often involving detailed economic and engineering analyses. A successful rate case can result in a refund of overcharges and a maximum reasonable rate going forward.
A shipper that has access to only one railroad for a given movement, providing that railroad with market power to set rates above competitive levels. Captive shippers are the primary beneficiaries of STB rate reasonableness protections. The degree of captivity is assessed based on geographic alternatives and the practicality of modal alternatives.